Key Takeaways

blueCheck icon

The cheapest business insurance providers are NEXT, Thimble, and The Hartford, based on MoneyGeek's 2025 nationwide analysis.  The most popular business insurance coverages are general liability, professional liability, and workers compensation insurance which is typically required.

blueCheck icon

Thimble offers the cheapest workers compensation polices starting at $41 for small business and $149 per month for businesses with 20+ employees.

blueCheck icon

Next offers the cheapest general liability insurance starting at $25 per month for small businesses and as low as $29 per month for businesses with 20 employees.  Next also has the most affordable professional liability insurance starting at $41 per month on average.

Cheapest Business Insurance Companies

Next Insurance is the cheapest business insurance provider with a MoneyGeek score of 95 out of 100. Their general liability coverage for 20-employee LLCs ($29 monthly) and professional liability rates ($241 for LLCs, $41 for sole proprietors) deliver good value. While their workers' compensation rates aren't the lowest, their overall pricing structure makes them the top choice for comprehensive coverage.

Cheapest Business Insurance Companies:

  1. Next (Score: 95) - Offers the most affordable general liability insurance for businesses with employees ($29/month) and best professional liability rates across both business types. Particularly ideal for businesses prioritizing these common coverage types.
  2. Thimble (Score: 91) - Features the best general liability rates for sole proprietors ($22/month) and the lowest workers' compensation premiums ($149/month). Perfect for independent contractors and small businesses focused on controlling workers' comp costs.
  3. The Hartford (Score: 88) - Provides balanced coverage with mid-range pricing across all categories. With strong professional liability offerings and over 200 years of experience, they're an excellent choice for businesses seeking reliability and stability.

The table below details the monthly costs of general liability, professional liability, and workers' compensation insurance for all the companies featured on our list. The table also includes MoneyGeek scores for each company representing their overall affordability.

How was this MoneyGeek score calculated?

Next95$29$25$241$41$200
Thimble91$66$22$1,838$47$149
The Hartford88$68$32$304$91$165
Nationwide88$47$35$349$121$195
biBERK86No Data$23$495$134$181
Hiscox84$126$29$349$126No Data

1
NextCheapest Overall
Score:95

5/5

General Liability Affordability for LLCs

3.7/5

General Liability Affordability for Sole Proprietors

5/5

Professional Liability Affordability for LLCs

5/5

Professional Liability Affordability for Sole Proprietors

1/5

Workers’ Compensation Affordability for LLCs

Geek Quick Take
Geek Quick Take
  • Exceptional affordability for general and professional liability insurance
  • High customer satisfaction but lower financial stability
  • Quick and efficient quote time
More About Next

We found that Next is the most affordable business insurance provider and excels in offering cost-effective general and professional liability insurance. With high affordability scores in these categories, it provides cheap general liability insurance at about $29 monthly for LLCs and $25 for sole proprietors. Next’s professional liability insurance is competitively priced at around $241 and $41 per month for LLCs and sole proprietors, respectively. While its workers' compensation insurance for LLCs is less competitive, at about $200 per month, Next's affordability and top-rated customer satisfaction make it an attractive choice for businesses seeking a balance between cost and quality. 
Based on an A- AM Best rating, its financial stability score is lower than some competitors. Despite this, the company's swift quote time of just over a minute further enhances its appeal to businesses. Next also saw lower customer service scores and our reviews indicate that some buyers don't like customer service that is mostly online based.

2
Thimble
Score:91

3.1/5

General Liability Affordability for LLCs

5/5

General Liability Affordability for Sole Proprietors

1/5

Professional Liability Affordability for LLCs

4.7/5

Professional Liability Affordability for Sole Proprietors

2.7/5

Workers’ Compensation Affordability for LLCs

Geek Quick Take
Geek Quick Take
  • Competitive general liability insurance for sole proprietors
  • Less affordable professional liability insurance for LLCs
  • Quick and efficient quote time
More About Thimble

Thimble ranks as the second-cheapest business insurance provider. The company provides general liability insurance at about $66 monthly for LLCs and a highly competitive $22 for sole proprietors. However, its professional liability insurance is relatively expensive for LLCs at a monthly average of $1,838 but remains cost-effective for sole proprietors at $47. Thimble's workers' compensation insurance for LLCs is reasonably affordable at around $149 monthly. Despite mixed customer satisfaction ratings, Thimble proves its commitment to efficient service with its excellent financial stability record and quick online quote process of just 42 seconds.  Certain consumers don't like the fully online and customer service experience at Thimble, while others appreciated not having to talk to an agent.

3
The Hartford
Score:88

3/5

General Liability Affordability for LLCs

1.3/5

General Liability Affordability for Sole Proprietors

4.8/5

Professional Liability Affordability for LLCs

2.3/5

Professional Liability Affordability for Sole Proprietors

1.9/5

Workers’ Compensation Affordability for LLCs

Geek Quick Take
Geek Quick Take
  • High customer satisfaction
  • Strong financial stability ratings
  • Efficient online quote time
More About The Hartford

The Hartford provides average affordability on its business insurance products relative to the other online providers. The company offers general liability insurance at about $68 per month for LLCs and $32 for sole proprietors. Its professional liability insurance is around $304 monthly for LLCs and $91 for sole proprietors. Workers' compensation insurance for LLCs is available at $165 per month. Despite the mixed affordability of its coverages, The Hartford boasts high customer satisfaction and financial stability ratings, the latter based on an A+ AM Best rating. The company's quote time of one minute and 30 seconds also underscores its efficient service delivery.

4
Nationwide
Score:88

4.1/5

General Liability Affordability for LLCs

1/5

General Liability Affordability for Sole Proprietors

4.7/5

Professional Liability Affordability for LLCs

1.7/5

Professional Liability Affordability for Sole Proprietors

1.3/5

Workers’ Compensation Affordability for LLCs

Geek Quick Take
Geek Quick Take
  • Affordable general and professional liability insurance for LLCs
  • Less competitive pricing for workers' compensation insurance for LLCs
  • High customer satisfaction and financial stability ratings
More About Nationwide

Nationwide offers business insurance products with a particular emphasis on affordability for LLCs. The company provides general liability insurance for LLCs at an average monthly cost of $47 and professional liability insurance at $349. For sole proprietors, Nationwide offers general liability insurance at around $35 per month and professional liability insurance at $121 per month. However, its workers' compensation insurance for LLCs at $195 per month is less competitive. It's also worth noting that the company's quote processing time of two minutes and 45 seconds is the slowest among the insurers we reviewed. Otherwise, Nationwide maintains excellent customer satisfaction and financial stability ratings.

5
biBERK
Score:86

0/5

General Liability Affordability for LLCs

4.6/5

General Liability Affordability for Sole Proprietors

4.2/5

Professional Liability Affordability for LLCs

1/5

Professional Liability Affordability for Sole Proprietors

1/5

Workers’ Compensation Affordability for LLCs

Geek Quick Take
Geek Quick Take
  • Competitive general liability insurance for sole proprietors
  • High financial stability and customer satisfaction ratings
  • Quick and efficient quote time
More About biBERK

biBERK, a member of the Berkshire Hathaway Insurance Group, provides varying affordability on its business insurance products. While no cost data is available for its general liability insurance for LLCs, it offers this coverage for sole proprietors at a competitive average of $23 per month. Its professional liability insurance is around $495 monthly for LLCs and $134 for sole proprietors. Workers' compensation insurance for LLCs is available at about $181 per month. Despite mixed affordability, biBERK boasts high customer satisfaction and financial stability ratings, the latter based on an A++ AM Best rating. The company's average quote time of one minute and 13 seconds demonstrates its dedication to swift and timely service.

How To Get Cheap Business Insurance

As a small business owner, finding affordable business insurance coverage can be a key part of managing your operational costs. Here are some steps you can take to secure cheap business insurance coverage:

  1. 1

    Shop around and compare quotes

    Get quotes from multiple insurers, including independent agents who work with several companies. Rates can vary significantly between providers for the same coverage.

  2. 2

    Bundle Your Policies

    Many insurers offer discounts when you purchase multiple types of coverage (general liability, property, workers' comp, cyber liability) from the same company.  For example, Next has special discounts of 10% on business insurance bundles and is particularly popular with small businesses for its competitive pricing.

  3. 3

    Consider Your Business Classification

    Make sure your business is properly classified. Sometimes adjusting how your business activities are described can result in lower rates if you qualify for a less risky category.

  4. 4

    Pay Annually Instead of Monthly

    Many insurers charge fees for monthly payment plans. Paying your premium annually often saves money on processing fees.  While Thimble, The Hartford, and Next doesn't specify their exact dicount offered for annual payment, we typically see a 5% discount in our quote research.

  5. 5

    Increase Your Deductibles

    Higher deductibles typically mean lower premiums. Just ensure you can afford the out-of-pocket costs if you need to file a claim.

  6. 6

    Minimize business risks

    Implementing a risk management plan can reduce the likelihood of claims, lowering your premiums. A risk management plan could include employee safety training or improving security measures.

  7. 7

    Review your policies on an annual basis

    As your business grows and changes, so do your insurance needs. Regularly reviewing your coverage ensures you're not over-insured or under-insured.

Remember, the cheapest policy may not always be the best for your business. It's important to balance cost with the quality and extent of coverage to protect your business adequately.

Compare Small business Insurance Rates

Ensure you're getting the best rate for your small business insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Business Insurance Policy Types

Most businesses need general liability insurance to protect against third-party injury and property damage claims, and workers' compensation insurance if they have employees. Professional liability insurance is essential for service-based businesses, while commercial property insurance protects physical assets and equipment. The specific combination depends on your industry, business structure, and operational risks.

General Liability Insurance

  • Foundation of business protection
  • Covers third-party bodily injury, property damage, and advertising injury claims
  • Average costs range from $22-$126 monthly depending on business size and type
  • Next offers most competitive rates for businesses with employees at $29 monthly

Professional Liability Insurance

  • Also known as errors and omissions (E&O) insurance
  • Protects service-based businesses from claims of professional mistakes or negligence
  • Costs vary significantly from $41 monthly for sole proprietors (through Next)
  • Can reach $1,838 monthly for LLCs with 20 employees (through Thimble)

Workers' Compensation Insurance

  • Required in most states for businesses with employees
  • Covers medical expenses and lost wages for work-related injuries or illnesses
  • Thimble offers the most affordable option at $149 monthly
  • Other providers range from $165-$200 monthly for businesses with 20 employees

Commercial Property Insurance

  • Protects business assets, including buildings, equipment, inventory, and furniture
  • Covers damage from perils like fire, theft, and certain natural disasters
  • Costs typically range from $33-$63 monthly
  • Pricing depends on property value and location

Factors That Impact Business Insurance Cost

Business insurance costs depend on several key factors that determine how much risk your company presents to insurers. High-risk industries like construction pay much more than low-risk businesses like consulting, while larger companies with more employees and revenue face higher premiums due to greater exposure. Your location, claims history, and chosen coverage levels also significantly impact what you'll pay, making it important to understand these cost drivers when shopping for insurance.

Business Type and Industry

  • Risk classification varies dramatically by industry
  • High-risk sectors (construction, manufacturing) face substantially higher premiums
  • Professional services or retail businesses typically pay lower rates
  • Insurance companies use classification codes to determine base rates for each industry

Business Size and Revenue

  • Larger businesses face higher insurance costs due to increased exposure
  • More employees, higher revenues, and greater assets increase premiums
  • Insurance costs often scale with business size
  • Particularly impacts coverage like workers' compensation

Location

  • Geographic location significantly impacts insurance rates
  • Varies due to state regulations, local claim patterns, and natural disaster risks
  • Coastal areas prone to hurricanes face higher premiums
  • Regions with earthquake risk can pay 2-3 times more than similar businesses in lower-risk regions

Claims History

  • Previous insurance claims directly affect future premiums
  • A single claim can increase rates by 10-40% for several years
  • Many businesses choose to pay minor claims out-of-pocket
  • Clean claims history helps maintain lower premiums

Coverage Limits and Deductibles

  • Higher coverage limits provide greater protection but increase premium costs
  • Lower deductibles result in higher monthly premiums
  • Finding the right balance is crucial for cost-effective coverage
  • Consider your risk tolerance when setting these levels

Risk Management Practices

  • Strong safety programs, security measures, and documented policies qualify for discounts
  • Many states offer workers' compensation discounts of 5-15% for safety programs
  • Preventative measures can significantly reduce premiums
  • Demonstrates lower risk profile to insurers

Years in Business

  • Established businesses typically qualify for better rates than new ventures
  • Insurers have more data to assess risk profiles and stability for older businesses
  • New businesses often pay higher initial premiums
  • Rates may improve as business demonstrates stability over time

Number of Employees

  • Employee count directly impacts workers' compensation costs
  • Premiums calculated based on payroll and job classifications
  • More employees in higher-risk positions result in higher insurance costs
  • Staffing changes should prompt insurance review

Cheapest Small Business Insurance: Bottom Line

Based on MoneyGeek’s 2025 nationwide analysis, the most affordable business insurance providers are NEXT, Thimble, The Hartford, Nationwide, biBERK, and Hiscox. However, the cheapest for your business depends on factors like the number of employees you have, your desired coverage, your industry, and more.

Cheap Small Business Insurance: FAQ

View the answers to your questions below to better understand where and how you can get cheap business insurance.

Which company offers the cheapest business insurance?

What factors impact business insurance costs?

How can you get cheap business insurance?

Do I need workers' compensation insurance if I'm a sole proprietor?

How much can industry type affect my business insurance costs?

What's the fastest way to get a business insurance quote?

Cheapest Small Business Insurance Rates: Our Review Methodology

MoneyGeek created a scoring system to compare small business insurance companies across cost metrics and ranked them based on affordability. We chose these companies based on their broad national coverage and ability to provide an online quote.

Small Business Sample Profile

We gathered quotes for two types of software development companies:

  • An LLC with five years in business, 20 employees, $5 million in annual revenue and $1,250,000 in annual payroll costs.
  • A sole proprietorship with five years in business, no employees, $500,000 in annual revenue and no payroll costs.

Quote Collection

MoneyGeek collected general liability, workers’ compensation and professional liability insurance quotes from six insurance companies across all 50 states. The policy limits varied by insurance type:

  • General liability: $2 million aggregate limit, $1 million occurrence limit and $0 deductible
  • Workers’ compensation: $1 million total policy limit, $1 million per accident limit and $1 million per employee limit
  • Professional liability: $1 million per occurrence limit, $1 million aggregate limit and $5,000 deductible

MoneyGeek Scoring Methodology

In our unique scoring system, companies can earn up to five points in each of our five categories. We then use these category scores to calculate a MoneyGeek affordability score out of 100. We applied the following weightings to score insurers:

  • General Liability Affordability for LLCs: 20%
  • General Liability Affordability for Sole Proprietors: 20%
  • Professional Liability Affordability for LLCs: 20%
  • Professional Liability Affordability for Sole Proprietors: 20%
  • Workers’ Compensation Affordability for LLCs: 20%

Learn more about MoneyGeek's business insurance methodology.

Affordable Business Insurance: Related Pages

About Melissa Wylie


Melissa Wylie headshot

Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.

Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.


Copyright © 2025 MoneyGeek.com. All Rights Reserved